BILL NUMBER: S157
SPONSOR: SALAZAR
 
TITLE OF BILL:
An act to amend the tax law, in relation to use tax exemptions for
certain race horses; and to repeal certain provisions of such law relat-
ing thereto
 
PURPOSE:
This bill would eliminate certain tax exemptions for horse racing in New
York State.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one repeals paragraph 29 of subdivision (a) of section 1115 of
the tax law.
Section two repeals subdivisions 9 and 10 of section 1118 of the tax
law.
Section three amends paragraph (b) of subdivision 2 of section 1118 of
the tax law.
Section four establishes the effective date.
 
JUSTIFICATION:
Horse racing attendance in New York State has sharply declined over the
years. While the summer racing season at Saratoga remains popular,
stands at Yonkers Raceway, Aqueduct Racetrack and others have become
practically empty. The decline in the popularity of horse racing in
recent years has been partly attributed to the public's increasing
disapproval of cruelty within the industry, evidenced by doping scandals
and high numbers of injuries and deaths. Despite horse racing's dimin-
ishing attraction, New York State continues to provide millions of
dollars in subsidies each year to prop up the industry. Other states,
including Kentucky, California, Illinois, and Texas do not provide state
subsidies to their racing industry as New York does.
New York State also exempts the purchase of racehorses from state sales
and use taxes. These horses, which cost tens of thousands of dollars,
are purchased by wealthy individuals who can afford to pay the tax. For
example, in 2023 at the Fasig-Tipton auctions of Thoroughbreds in Sara-
toga Springs, sales totaled about.$100 million in tax exempt purchases
of racehorses. By beginning to eliminate the tax exemptions and subsi-
dies provided to the racing industry, New York can make greater invest-
ments in education, housing, and other underfunded areas.
 
LEGISLATIVE HISTORY:
SENATE: 2024: S 481 (Salazar) Referred to Budget and Revenue.
2023: S481 (Salazar) - Referred to Budget and Revenue, Reported and
committed to Finance
2022: S7260 (Salazar) - referred to Budget and Revenue.
2021: S7260 (Salazar)- Referred to Rules
ASSEMBLY:
2023-2024: A1438 (Rosenthal) - Referred to Ways and Means
2021-2022: A7745 (Rosenthal)- Referred to Ways and Means
 
FISCAL IMPLICATIONS:
Undetermined. It is likely this bill - by repealing the sales and use
tax exemptions for the purchase of racehorses - will result in signif-
icantly increased tax revenue to localities and the State.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S157: 1115 tax law, 1118 tax law, 1118(2) tax law